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Logistics Management and Strategy
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Mô tả chi tiết
Logistics Management
and Strategy
3rd edition
Competing through the supply chain
Alan Harrison and
Remko van Hoek
and Strategy
Logistics Management
3rd
edition Harrison and van Hoek
Logistics Management and Strategy
Competing through the supply chain
3rd edition
Alan Harrison and Remko van Hoek
A concise, applied and strategic introduction to the subject of logistics and supply chain management, perfect
for modern managers and students of logistics and supply chain management.
Logistics and supply chain management continue to transform the competitive landscape and have become
one of today’s key business issues. This third edition of Logistics Management and Strategy continues to take a
practical, integrated and international approach to logistics and includes the very latest research to reflect the
innovative and exciting developments in this subject area.
A clear framework guides the reader through the four parts of the book, covering:
l an introduction to logistics and its contribution to competitiveness and value creation,
l leveraging logistics operations within the context of the customer,
l supplier partnerships, interfaces and the challenges of integration,
l leading-edge thinking in logistics and the future challenges ahead.
New to this edition…
l more on reverse logistics together with green, ethical and CSR issues,
l revised chapters on supply chain planning and control and on agility,
l fully revised final chapter ties in the future challenges facing logistics more closely
with the rest of the book.
‘Well written and contains a wealth of valuable ideas and concepts.’
Dr Jan de Vries, University of Groningen
Every chapter features case studies with study questions, activities and end of chapter discussion questions
to help students explore logistical concepts in operational detail. Teaching support notes and PowerPoint
slides for lecturers can be downloaded from the book’s website at www.pearsoned.co.uk/harrison
‘Very up-to-date, both in terms of its conceptual framework and
the topics covered. Remarkably clear and easy to read.’
Dr Tony Whiteing, University of Huddersfield
Alan Harrison is Professor of Operations and Logistics at Cranfield School of Management, and Director of
Research at The Cranfield Centre for Logistics and Supply Chain Management.
Remko van Hoek is Professor of Supply Chain Management at The Cranfield Centre for Logistics and Supply
Chain Management. He is also Vice President Procurement at Nuon in the Netherlands.
www.pearson-books.com
9780273712763_03_COVER.indd 1 18/10/07 13:56:29
Logistics Management
and Strategy
Competing through the supply chain
LOGI_A01.QXP 3/17/08 9:35 AM Page i
We work with leading authors to develop the
strongest educational materials in logistics,
bringing cutting-edge thinking and best
learning practice to a global market.
Under a range of well-known imprints, including
Financial Times Prentice Hall, we craft high quality print and
electronic publications which help readers to understand
and apply their content, whether studying or at work.
To find out more about the complete range of our
publishing, please visit us on the World Wide Web at:
www.pearsoned.co.uk
LOGI_A01.QXP 3/17/08 9:35 AM Page ii
Logistics Management
and Strategy
Competing through the supply chain
Third Edition
Alan Harrison
Remko van Hoek
LOGI_A01.QXP 3/17/08 9:35 AM Page iii
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 2002
Second edition published 2005
Third edition published 2008
© Pearson Education Limited 2002, 2005
© Alan Harrison and Remko van Hoek 2008
The rights of Alan Harrison and Remko van Hoek to be identified as authors
of this work have been asserted by them in accordance with the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without either the prior
written permission of the publisher or a licence permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of
any trademark in this text does not vest in the author or publisher any trademark
ownership rights in such trademarks, nor does the use of such trademarks imply any
affliliation with or endorsement of this book by such owners.
ISBN: 978-0-273-71276-3
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Harrison, Alan, 1944–
Logistics management and strategy : competing through the supply chain / Alan Harrison,
Remko van Hoek.— 3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-273-71276-3 (pbk. : alk. paper) 1. Business logistics. 2. Industrial
management. I. Hoek, Remko I. van. II. Title.
HD38.5.H367 2008
658.5—dc22
2007046447
10 9 8 7 6 5 4 3 2
11 10 09 08
Typeset in 9.5pt Stone Sans by 3
Printed and bound in Malaysia
The publisher’s policy is to use paper manufactured from sustainable forests.
LOGI_A01.QXP 3/17/08 9:35 AM Page iv
To Nick, Katie, Maryl and Ticho, with love.
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Contents
Foreword xv
Preface xvii
Author’s acknowledgements xix
Publisher’s acknowledgements xx
How to use this book xxiii
Plan of the book xxv
Part One COMPETING THROUGH LOGISTICS
1 Logistics and the supply chain 3
Introduction 3
1.1 Logistics and the supply chain 4
1.1.1 Definitions and concepts 6
1.1.2 Supply chain: structure and tiering 8
1.2 Material flow and information flow 12
1.2.1 Material flow 12
1.2.2 Information flow 14
1.3 Competing through logistics 15
1.3.1 Hard objectives 16
1.3.2 Supportive capabilities 18
1.3.3 Soft objectives 22
1.3.4 Order winners and qualifiers 23
1.4 Logistics strategy 25
1.4.1 Defining ‘strategy’ 26
1.4.2 Aligning strategies 27
1.4.3 Differentiating strategies 28
Summary 30
Discussion questions 31
References 31
Suggested further reading 32
2 Putting the end-customer first 33
Introduction 33
2.1 The marketing perspective 34
2.1.1 Rising customer expectations 35
2.1.2 The information revolution 35
2.2 Segmentation 36
2.3 Quality of service 44
2.3.1 Customer loyalty 45
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2.3.2 Value disciplines 46
2.3.3 Customer relationship management (CRM) 47
2.3.4 Measuring service quality 50
2.4 Setting priorities for logistics strategy 50
2.4.1 Step 1: Diagnose current approach to market segmentation 50
2.4.2 Step 2a: Understand buying behaviour 52
2.4.3 Step 2b: Customer value analysis 53
2.4.4 Step 3: Measure logistics strategy driver 54
2.4.5 Step 4: Specify future approach to market segmentation 54
Summary 57
Discussion questions 58
References 63
Suggested further reading 64
3 Value and logistics costs 65
Introduction 65
3.1 Where does value come from? 66
3.1.1 Return on investment (ROI) 67
3.1.2 Financial ratios and ROI drivers 69
3.2 How can logistics costs be represented? 71
3.2.1 Fixed/variable 71
3.2.2 Direct/indirect 76
3.2.3 Engineered/discretionary 78
3.3 Activity-based costing (ABC) 81
3.3.1 ABC example 82
3.3.2 Cost–time profile (CTP) 83
3.4 A balanced measurement portfolio 85
3.4.1 Balanced measures 86
3.4.2 Supply chain management and the balanced scorecard 87
3.4.3 Supply chain financial model 88
3.5 Supply chain operations reference model (SCOR) 89
Summary 93
Discussion questions 94
References 95
Part Two LEVERAGING LOGISTICS OPERATIONS
4 Managing logistics internationally 99
Introduction 99
4.1 Drivers and logistics implications of internationalisation 101
4.1.1 Logistical implications of internationalisation 102
4.1.2 Time-to-market 105
4.1.3 Global consolidation 106
4.1.4 Risk in international logistics 109
viii Contents
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4.2 The tendency towards internationalisation 111
4.2.1 Focused factories: from geographical to product
segmentation 111
4.2.2 Centralised inventories 112
4.3 The challenges of international logistics and location 115
4.3.1 Extended lead time of supply 116
4.3.2 Extended and unreliable transit times 116
4.3.3 Multiple consolidation and break points 116
4.3.4 Multiple freight modes and cost options 117
4.3.5 Location analysis 118
4.4 Organising for international logistics 120
4.4.1 Layering and tiering 120
4.4.2 The evolving role of individual plants 121
4.4.3 Reconfiguration processes 122
4.5 Reverse logistics 129
4.6 Managing for risk readiness 130
4.6.1 Immediate risk readiness 130
4.6.2 Structural risk readiness 131
4.7 Corporate social responsibility in the supply chain 132
Summary 136
Discussion questions 137
References 137
Suggested further reading 137
5 Managing the lead-time frontier 139
Introduction 139
5.1 The role of time in competitive advantage 140
5.1.1 Time-based competition: definition and concepts 140
5.1.2 Time-based initiatives 141
5.1.3 Time-based opportunities to add value 141
5.1.4 Time-based opportunities to reduce cost 144
5.1.5 Limitations to time-based approaches 146
5.2 P:D ratios and differences 146
5.2.1 Using time as a performance measure 147
5.2.2 Using time to measure supply pipeline performance 148
5.2.3 Consequences when P-time is greater than D-time 150
5.3 Time-based process mapping 153
5.3.1 Stage 1: Create a task force 154
5.3.2 Stage 2: Select the process to map 154
5.3.3 Stage 3: Collect data 155
5.3.4 Stage 4: Flow chart the process 155
5.3.5 Stage 5: Distinguish between value-adding and
non-value-adding time 155
5.3.6 Stage 6: Construct the time-based process map 156
5.3.7 Stage 7: Solution generation 156
Contents ix
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5.4 Managing timeliness in the logistics pipeline 161
5.4.1 Strategies to cope when P-time is greater than D-time 162
5.4.2 Practices to cope when P-time is greater than D-time 163
5.5 A method for implementing time-based practices 164
5.5.1 Step 1: Understand your need to change 165
5.5.2 Step 2: Understand your processes 165
5.5.3 Step 3: Identify unnecessary process steps and large
amounts of wasted time 166
5.5.4 Step 4: Understand the causes of waste 166
5.5.5 Step 5: Change the process 166
5.5.6 Step 6: Review changes 166
5.5.7 Results 167
5.6 When, where and how? 167
Summary 168
Discussion questions 169
References 169
Suggested further reading 169
6 Supply chain planning and control 171
Introduction 171
6.1 The supply chain ‘game plan’ 173
6.1.1 Planning and control within the focal firm 173
6.1.2 Managing inventory in the supply chain 177
6.1.3 Inter-firm planning and control 181
6.2 Just-in-time (JIT) 184
6.2.1 The just-in-time system 185
6.2.2 JIT and material requirements planning (MRP) 190
6.3 Lean thinking 192
6.3.1 The seven wastes 194
6.3.2 Application of lean thinking to business processes 195
6.3.3 Role of lean practices 196
6.3.4 Design strategies 197
6.3.5 Lean product design 197
6.3.6 Lean facility design 197
6.3.7 Lean thinking summary 198
Summary 198
Discussion questions 199
References 200
Suggested further reading 201
7 The agile supply chain 203
Introduction 203
7.1 The concept of agility 204
7.1.1 Demand characteristics and supply capabilities 206
7.1.2 Classifying operating environments 214
x Contents
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7.1.3 Preconditions for successful agile practice 214
7.1.4 Summary 219
7.2 Agile drivers and practices 219
7.2.1 Joint decision making to improve external network
integration 222
7.2.2 Developing measures to put the end-customer first 223
7.2.3 Shared goals to improve virtual integration 224
7.2.4 Boundary-spanning SOP to improve process integration 225
Summary 226
Discussion questions 227
References 228
Suggested further reading 229
Part Three WORKING TOGETHER
8 Integrating the supply chain 233
Introduction 233
8.1 Integration in the supply chain 234
8.1.1 Internal integration: function to function 235
8.1.2 Inter-company integration: a manual approach 237
8.1.3 Electronic integration 238
8.2 Efficient consumer response (ECR) 242
8.2.1 Category management 243
8.2.2 Continuous replenishment 243
8.2.3 Enabling technologies 244
8.3 Collaborative planning, forecasting and replenishment (CPFR) 248
8.3.1 Benefits of electronic collaboration 252
8.4 Vendor-managed inventory (VMI) 252
8.4.1 How VMI works 253
8.4.2 Potential benefits 253
8.4.3 Potential problems in setting up a VMI system 254
8.5 Quick response (QR) 255
8.5.1 JIT/QR relationship 256
8.5.2 Role of enabling technologies 256
8.6 Managing supply chain relationships 257
8.6.1 Creating closer relationships 257
8.6.2 Factors in forming supply chain relationships 258
Summary 260
Discussion questions 261
References 262
Suggested further reading 263
9 Purchasing and supply relationships 265
Introduction 265
Contents xi
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9.1 Choosing the right supply relationships 266
9.2 Partnerships in the supply chain 274
9.2.1 Economic justification for partnerships 274
9.2.2 Advantages of partnerships 274
9.2.3 Disadvantages of partnerships 275
9.3 Supply base rationalisation 275
9.3.1 Supplier management 276
9.3.2 Lead suppliers 276
9.4 Supplier networks 277
9.4.1 Supplier associations 277
9.4.2 Japanese keiretsu 280
9.4.3 Italian districts 281
9.5 Supplier development 284
9.5.1 Integrated processes 285
9.5.2 Synchronous production 285
9.6 Implementing strategic partnerships 286
Summary 290
Discussion questions 291
References 292
Suggested further reading 293
Part Four CHANGING THE FUTURE
10 Logistics future challenges and opportunities 297
Introduction 297
10.1 Internal alignment 298
10.2 Selecting collaborative opportunities upstream and downstream 302
10.3 Managing with cost-to-serve to support growth and profitability 305
10.4 The supply chain manager of the future 308
Summary 310
Discussion questions 310
References 310
Suggested further reading 310
Index 311
xii Contents
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Supporting resources
Visit www.pearsoned.co.uk/harrison to find valuable online resources
For instructors
• Complete, downloadable Instructor’s Manual, containing teaching notes,
notes on case studies and teaching tips, objectives and discussion points for
each chapter
• Downloadable PowerPoint slides of all figures from the book
For more information please contact your local Pearson Education sales
representative or visit www.pearsoned.co.uk/harrison
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